New Century In Dire Straits

Law360, New York (March 9, 2007, 12:00 AM EST) -- Amid recent revelations of a criminal investigation, regulatory inquiries and numerous civil cases, New Century Financial Corp. said Thursday that it has stopped issuing new loans, leading some to speculate that the country’s second-largest subprime lender may file for bankruptcy.

Last week, New Century announced that it would be filing its 2006 annual 10-K report late, and would be restating financial statements for quarters ended March 1, June 30 and Sept. 30, 2006 “to correct errors the company discovered in its accounting and financial reporting of...